The approximately US$25 Bn e-cigarette market (as of 2021) reflects no signs of a slowdown anytime soon. The global market may even see more than double revenue growth during the period of projection, 2022 - 2027.
Regulatory Approvals for Production and Marketing of ENDS Products to Bolster Growth of the E-cigarette Market
The e-cigarette market is expected to witness a new transition backed by rising marketing efforts with approvals from regulatory bodies. Since past few years, e-cigarettes are being used by adult population as well as youth. However, the marketing of Electronic Nicotine Delivery System (ENDS) products was not approved by the US FDA initially. However, in 2021, FDA-authorised marketing of ENDS products through Premarket Tobacco Product Application (PMTA) pathway. The authorisation provided by FDA is considered as a critical step towards ensuring a thorough and a robust scientific premarket evaluation of all new tobacco products by the authority. This initiative was in line with the notion that addicted smokers would switch to ENDS products that would benefit them either completely or by significantly reducing the consumption of tobacco. The PMTA pathway allows manufacturers of these products to demonstrate to the FDA that marketing of their products would be appropriate to protect public health
With FDA’s approval for marketing of ENDS products, several manufactures have gained authority to carry out their marketing campaigns. Few of the recent premarket marketing of tobacco products include NJOY Daily Rich Tobacco (June 2022) and NJOY ACE POD Classic (April 2022) by NJOY LLC, Vuse Vibe Power Unit (May 2022) by R.J. Reynolds Vapor Company, Logic Regular Cartridge (March 2022) and Logic Vapeleaf Cartridge (March 2022) Logic Technology Development LLC, VERVE Discs Blue Mint (October 2021) by U.S. Smokeless Tobacco Company and Vuse Solo Power Unit (October 2021) by R.J. Reynolds Vapor Company. In addition, government bodies are also granting licenses for production of e-cigarettes. For instance, Chinese Government has provided e-cigarette production license to SMOORE under its set regulations and regulatory framework that the company obliged. Such approvals and grants offered by regulatory bodies and governments are expected to significantly boost the production and marketing activities of ENDS products, in turn influencing growth of the e-cigarette market.
Rechargeable E-cigarettes to Account for Significant Value Share in E-cigarette Market
Demand and sales of rechargeable e-cigarettes are expected to soar at a high pace in the following years owing to their functional benefits. Rechargeable e-cigarettes are comparatively cost effective as they eliminate the need of re-purchasing of supplies such as e-cigarette cartridges. Also, the do-it-yourself (DIY) trend has influenced consumers worldwide. With this trend, customers can make refill their own cartridges, thus eliminating the need to purchase them. In addition, rechargeable e-cigarettes produce less smoke as compared to other types and can be easily charged using USB port. These factors have propelled their adoption, consequently contributing towards revenue share of the e-cigarette market.
North America’s Pre-eminence Intact in Global E-cigarette Market
The sales of e-cigarettes in North America are expected to increase at a stable rate in the forthcoming years. This is mainly owing to rising demand of e-cigarettes among millennials and youth who prefer cost effective products as compared to conventional ones. E-cigarettes do not incur recurring costs unlike their traditional counterparts and have a long service life. They can be used and re-used after refilling which is comparatively economical as compared to conventional tobacco cigarettes. This factor has led to an increase in sales of e-cigarettes in North America making it a huge consumer for the product.
For instance, according to the analysis of the Centers for Disease Control and Prevention (CDC), a 31.1% increase in sales of e-cigarette products was witnessed in 2021 over the previous year to reach a count of 290.4 million units. In addition, as per CDC, sales of flavoured non-tobacco e-cigarettes such as candy, fruit and mint soared significant during the 2020-2021period. In 2020, around 151.4 million units of flavoured e-cigarettes were sold which increased to 215.5 million units in 2021 reflecting a jump of 42.3%. This figure also represents an increase in the market share of the product from 68.4% in 2020 to 74.2% in 2021. This factor reveals the attractiveness of North America apropos to sales and demand of the product making it a leading region in global e-cigarette market.
E-cigarette Market: Competition Scenario
Major players in the e-cigarette market have been adopting growth strategies such as collaborations, new product launches, partnerships, and alliances to strengthen their position in the market. A few of the major players in global e-cigarette market include Imperial Brands PLC, Japan Tobacco Inc., JUUL Labs Inc., Phillip Morris International Inc., British American Tobacco Inc., Altria Group Inc., NicQuid, Shenzhen IVPS Technology Co. Ltd., International Vapour Group, Shenzhen KangerTech Technology Co. Ltd., R.J. Reynolds Vapour Company, and Njoy Inc.
Recent Notable Developments
The Global E-Cigarette Market Is Segmented As Below:
By Distribution Channel
Key Elements Included In The Study: Global E-cigarette Market
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